It is generally accepted that the Korean government has played a deci development during the sive role in the nation's successful economic last thirty years. However, one should be aware that it is very difficult to define the concept of government-led economic management pre- cisely. For the purposes of our analysis, we suggest that a government management regime is an economic policy regime in ed economic determines major endogenous economic var which the government ables within the realm of private economic agents by imposing its will on the market as an outsider. Under such a regime, the government predetermines the outcome that would otherwise be determined endogenously through market competition processes economic management such as that defined above A government-led exhibits the following characteristics. The government macroeconomic generally relies on direct regulation such as credit management operations for money supply control and rationing over open-market on wage-price controls over aggregate demand management for anti inaationary policy. In addition, the government microeconomic policy takes the form of picking the winners before the market process works itself out and provides the means(i.e. financial support) necessary for the chosen to win. In order for this interventionistic economic man agement to be successful without causing severe distortions in resource allocation, the government must have Informational superiority over
the private market participants, as well a a complete set of solutions ready to be put into action to tackle difficult policy issues. Unfortunately, the requirements that must be fulfilled so that government intervention can be of benefit are difficult to satisfy- particularly as the economy grows in size and complexity. since a complete recipe for solutions to various economic problems cannot be readily available. intervention should be reduced in order to the degree of government benefit the economy. Korea seems to have entered this stage of economic development already and is in need of active initiatives on the part of the private sector in order to secure further sustained economic development.